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Do reemployment programs for the unemployed work for youth? Evidence from the Great Recession in the United States [Nevada REA vs. Control] (Michaelides et al., 2020)

Absence of conflict of interest. 

Citation

Michaelides, M., Mueser, P. R., & Smith, J. A. (2020). Do reemployment programs for the unemployed work for youth? Evidence from the great recession in the United States. IZA Discussion Papers, No. 13324. [Nevada REA vs. Control]

Highlights

  • The study's objective was to examine the impact of reemployment programs on public benefits receipt, employment, and earnings outcomes for youth. This profile focuses on the comparison between the Nevada Reemployment and Eligibility Assessment (REA) program and the control group. The authors investigated similar research questions for other contrasts, the profiles of which can be found here:
  • The study was a randomized controlled trial at the Nevada site. Using unemployment insurance (UI) claims data and wage records collected by the state of Nevada, the authors conducted statistical models to compare the outcomes between treatment and control group members.  
  • The study found significant negative relationships between participation in the Nevada REA program and collecting/exhausting regular and emergency UI benefits. Additionally, the study found significant positive relationships between the REA program and employment and earnings in the quarters following program entry. 
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Nevada REA program, and not to other factors. 

Intervention Examined

The Reemployment and Eligibility Assessment (REA) Initiative in Nevada

Features of the Intervention

The Nevada REA program was a state-level implementation of the larger Reemployment and Eligibility Assessment framework. The Nevada REA program was created to encourage reemployment and establish in-person eligibility reviews to ensure that beneficiaries were eligible for benefits and if eligible, require job counseling services.  

Features of the Study

This study was part of a three-site investigation of reemployment programs during the Great Recession. This profile focuses on the Nevada REA vs. control group analysis.  

The study used a randomized controlled trial to examine the impact of the Nevada REA program. To be eligible, participants were required to be under the age of 25, receiving UI benefits in the state of Nevada, and be REA service eligible due to increased risk of exhausting their regular UI benefits. Of the 2,767 eligible UI recipients, 16% were assigned to REA and 84% were assigned to the control group. Participants who were randomly assigned to the REA treatment group were required to complete the in-person eligibility review and received notification letters of the requirement when they collected their first weekly UI payment. If participants passed the review, they were required to receive job counseling services from program staff to continue receiving UI benefits. Participants randomly assigned to the control group were also eligible for REA services; however, they were not required to fulfill the REA program requirements to continue receiving UI benefits. Of the participants in the sample, the majority were male and had a high school diploma or above. Data sources included UI claims data and wage records collected by the state of Nevada. The authors used statistical models to compare the outcomes of treatment and control group members.  

Findings

Public benefits receipt  

  • The study found that participation in the Nevada REA program had a significant negative effect on the number of weeks receiving and exhausting regular UI and Emergency Unemployment Compensation (EUC) benefits. 
  • The study also found a significant negative relationship between participation in the Nevada REA program and the dollar amount of regular UI benefits received.  

Employment  

  • The study found that participation in the Nevada REA program significantly increased employment rates in the first two quarters following program entry.  

Earnings and wages 

  • The study found that participation in the Nevada REA program significantly increased earnings in the first three quarters following program entry.  

Causal Evidence Rating

The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to the Nevada Reemployment and Eligibility Assessment (REA) program, and not to other factors. 

Reviewed by CLEAR

May 2024

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